Don't go overboard on statements about potential price increase - MyCC

09/02/2022 06:21 PM

KUALA LUMPUR, Feb 9  -- Recent statements signalling the market on a potential price increase by certain influential groups of enterprises are unnecessary and can cause fear and panic amongst consumers, said the Malaysia Competition Commission (MyCC).

MyCC chief executive officer Iskandar Ismail, in a statement today, said it is aware of recent statements by certain groups that have warned consumers amongst others, to prepare themselves for prices of food and non-food items to go up by 10 percent and also on the projected disruption of certain essential food items until Ramadan and Aidilfitri allegedly due to the prolonged discussion on subsidy.

“It is to be noted that these entities have strong leverage in the relevant markets and as such, the said statements could amount to an attempt to shape the conduct of enterprises in the market.

“Such actions, if found to have the object of significantly preventing, restricting or distorting competition in the market, can raise competition concerns under the Competition Act 2010. For instance, signalling the market on potential price increase,” he said.

Iskandar said price signalling may include invitations to collude or public statements that have potential anti-competitive effects of pricing disclosures and may amount to a violation under either generic prohibitions of anti-competitive agreements or concerted practices prohibitions.

Therefore, it said all entities should be minded to focus their efforts and join arms with the government in finding the best mechanism to address the issues, he said. 

He said the Commission also reminded all groups especially federations of associations, associations of traders or enterprises to refrain from issuing similar statements and any similar statements to the effect in the future.

Iskandar said the commission will continue to actively monitor the situation and assess anticompetitive price signaling and price disclosures impacts; investigate anti-competitive information disclosure and exchanges; and, where appropriate, take enforcement actions including imposing appropriate penalty and direction against the parties concerned.


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